Standard Life (LSE:SDLF), the group formerly known as Phoenix, offers one of the higher yields in the FTSE 100, and a large Acquisition is drawing near. Half-year figures showed profit up 25%, with the £2bn purchase of Aegon's UK Business reported to be on track for the end of 2026. For income investors, the task is to judge a sizeable Yield alongside a negative Payout Ratio and the demands of a major deal.

A high yield and measured growth

Our figures, a snapshot from 7 October, show an annual Dividend of 55.4p per share and a latest payment of 28.05p. The trailing 12-month yield is 6.5% and the indicated yield is 6.4%. Those levels place the stock firmly among the income names in the index, and they are comfortably ahead of the wider market. One retail platform has described the company as a high-yielder, and it is easy to see why.

Growth is more restrained. The dividend rose 2.6% year on year, a pace that points to a measured policy, not an aggressive one. For a stock on this yield, most of the income appeal lies in the starting level, with modest annual increases on top. If Inflation runs above that rate, the real value of the income would shrink, which is something holders should keep in mind.

The negative payout and a dependable record

The payout ratio in our data is -114.1%. A negative figure arises when trailing Earnings on the measure used are negative, so the company is shown as paying a dividend despite a statutory loss. It should not be read as a conventional measure of cover. No meaningful cover multiple can be calculated from it.

That does not make the number irrelevant. Life and pensions consolidators can report volatile statutory earnings because market movements, hedging and long-dated liabilities all pass through their accounts, and this is why investors tend to focus on cash generation and Capital instead. It also explains why the same company can report a rising adjusted operating profit alongside a negative trailing ratio. Even so, the figure shows statutory earnings did not cover the dividend on this basis, which puts more weight on those other measures.

Standard Life (LSE:SDLF) has 17 years of continuous payments in our data and 11 years of continuous growth. That is a solid record, showing that the board has kept the dividend moving forward through a variety of market conditions, including the Pandemic and a period of sharply higher interest rates. The modest current rate of growth is consistent with this pattern, as a small and repeatable rise is typically easier to maintain than a large one.

A record of that length is no guarantee, but it does suggest that the dividend sits close to the centre of the Investment story, and that the board would be reluctant to break it.

Half-year results and the Aegon deal

The group's half-year results reported adjusted operating profit of £563m and Assets under administration of £333bn. One report described this as a 25% rise in profit, and said the £2bn Aegon UK deal was on track to complete by the end of 2026.

The deal is the main change in the story for dividend investors. Acquisitions can add scale and future cash flows, which would support distributions over time. They also bring integration risk and a need for funding. Investors would be wise to look at the company's own statements on those points.

What to watch

The key marker is completion of the Aegon UK purchase, along with any update on integration and funding. Investors should also watch cash generation and leverage, which matter most for a dividend on this yield. Full-year results will show the final payment and whether the 11-year growth streak continues, and whether the trailing payout ratio turns positive.